Gold Breaks Records: Can Bitcoin Keep Up?

Gold, which has achieved the best performance of the last 11 years, continues to impress with its rise. The trade wars initiated by the US and engulfing global markets are triggering the record-breaking rise in the price of gold. The Kobeissi Letter, sharing on the X platform, emphasized that the rise in gold is the “best” performance since 2013.

Historically, gold has been the safest haven. Wars, political tensions and global developments have increased the trend towards gold. Although Bitcoin, the leading cryptocurrency, has been touted as digital gold, it has not been able to accompany the recent rise in gold.

Gold (XAU) reached levels close to $ 3,300 per ounce. Commenting on the record-breaking gold, Kobeissi said, “Gold fund net inflows have reached a record high of $80 billion since the beginning of the year. This is 2 times more than the previous peak set in the full year 2020.” commented Kobeissi.

Crypto investors have begun to wonder whether Bitcoin will be able to accompany the rise in the price of gold.

Bitcoin May Accompany Gold Price Rise

The Kobeissi Letter posted the following on X;

Due to market uncertainty, investors are putting money into gold at a record pace. As a result, gold prices are up 22% since the beginning of the year, outperforming all other major asset classes.

Despite the bull run in the gold price, the Bitcoin (BTC) price declined. Spot Bitcoin ETFs traded in the US also triggered the declines. Institutional investors felt that Bitcoin was not a safe haven amid market uncertainty.

Claiming that the rise in the gold price may end soon, Peter Brandt said;

Gold has now entered the boom phase. Such rapid Progress will reach a final climax.

A popular theory suggests that BTC is following gold trends, albeit with a lag of a few months. Experts predict that BTC will start to rise as the gold price declines from its peak.